Novi Digital Wallet: Facebook's Cryptocurrency-Based Product to be a Key Player in Global Payment System

Facebook is preparing to introduce the Novi Digital Wallet, which is the company's most recent blockchain-based payment project aimed at assuring smooth transactions in the global payments system. According to the head of Facebook's financial services division, David Marcus, the new digital wallet created by the Instagram app owner could play a vital role in fixing the global payment system.

Moreover, several states in the United States have already approved the latest product ready to be sold in the market. In a blog post, Facebook's David Marcus said, "Change is long overdue." Marcus, who was hired in 2018 by Facebook to lead the company's blockchain efforts said, "Novi is ready to come to market."

"We feel that it's unreasonable to delay delivering the benefits of cheaper, interoperable, more accessible digital payments," Marcus wrote. According to Marcus, the digital currency wallet that he oversees is being dubbed an interoperable product that will enable people, and eventually small businesses, to make transactions domestically and internationally in a "quick and affordable way."

Marcus also revealed that Novi, which is seeking necessary regulatory clearances, has been granted secured licenses and regulatory approval by almost every US state. He further added that the company will not launch the product anywhere they have not received such clearances.

Novi Digital Currency Wallet

What is Novi Digital Wallet?

The Novi digital wallet tied to Diem blockchain-based payment system is a soon-to-be-launched financially regulated digital currency wallet of Facebook.

Many people have been intrigued about Facebook caring to construct Novi using stable coins rather than fiat money over the last couple of years, according to David, who pushed Facebook to progress toward adopting the digital currency. Marcus said that people think Facebook has an "ominous strategy" to make money and that the company couldn't be doing this out of the goodness of hearts, according to reports.

Meanwhile, Marcus' response to these statements is that he can't blame the people for thinking this. "But that claim comes from a place of misunderstanding the tech industry, and an ethos that most very successful tech companies have espoused," the chief of Facebook's financial services division said.

How Does Novi Work?

When the user adds money to their wallet, the money is converted into a Diem digital currency that can be used to send to anyone worldwide.

Users just have to select the person they want to transfer the money to, then enter the amount, see the exchange rate, and make the transaction. The user can also track every step and add a personal note to the receivers.